So I may be putting together a fund/line of equity for continual purchases of property for an acquantaince who buys and rents out homes. Is 3% equity in the properties fair to ask for?
My responsibilities are basically to put together a good presentation of his current business and pitch it to friends of mine to try to drum up commitments of about $2M a month to cover the majority of the equity that needs to be put down to purchase the properties. I may have to assist in the process of getting a system in place for tracking the investments, automating people's payouts etc.
4% seems a bit steep, but these properties are getting huge returns and the capital introductions are valuable. What do you think?